BRICS Treads Carefully on De-Dollarization, Focuses on Local Currencies

The BRICS nations have taken a cautious approach to de-dollarization by focusing on building alternatives around local currencies and cross-border payments, rather than replacing the US dollar with a common currency. The group's joint statement emphasizes interoperable payment systems, local-currency settlements, and voluntary cooperation that respects national priorities.

The statement backed the work of the BRICS Payment Task Force (BPTF) in exploring pragmatic solutions for cross-border payments, calling for continued efforts to develop mechanisms that are fast, low-cost, accessible, efficient, transparent, and safe. The push for de-dollarization remains central to the wider BRICS debate, with Iranian President Masoud Pezeshkian and Russian President Vladimir Putin arguing for reducing dependence on the dollar.

Pezeshkian made a strong case for wider use of national currencies in trade among BRICS members, along with instruments to manage currency risks and reciprocal settlements. He argued that the concentration of the international financial system around a limited number of currencies leaves economies exposed to political shocks.